A recent report from CNBC indicates that Walmart is quietly preparing its entry into the metaverse. On December 30, the company filed a series of patent applications that stated its interest in this space.
According to information in the filing, Walmart (NYSE: WMT) intends to sell virtual goods, including electronics, sporting equipment, toys, appliances, apparel, and more. Walmart also mentioned offering customers cryptocurrency and the opportunity to deal in NFTs. In a different but similar application, there were mention of possible “physical fitness training services” and “health and nutrition classes.” These services and classes intend to be through augmented reality (AR) and virtual reality (VR).
Walmart (NYSE: WMT) might also be preparing for a virtual shopping experience. Bloomberg pointed out that Walmart has filed patents for the names “Verse to home” and “Verse to Store.” It will be noted that Walmart has also tried virtual shopping experiments in the past.
Walmart (NYSE: WMT) has also increasingly shown its interest in cryptocurrencies and the metaverse. Last August, the company posted a job listing for a product specialist in cryptocurrencies. Walmart is not the only retailer that has indicated its interest in the metaverse and cryptocurrencies, though. It is among the early adopters. Nike (NYSE: NKE) is making an offering to cash in on NFTs and making its sneakers virtual. Adidas’ “Into the Metaverse” NFT collection is selling out, while Gap is making its hoodies into NFTs.
According to Josh Gerben, a trademark attorney, “the filings are super intense. There’s a lot of meaning in the wording, which shows a lot of planning going on behind the scenes about how they’re going to address cryptocurrency, how they would address the metaverse, and the virtual world that is either coming or already here.”
What this means for Walmart
Walmart has not publicly indicated its interest in the metaverse. But in a statement, it said it is “continuously exploring how emerging technologies may shape future shopping experiences.” No mention of its recent patent filings was mentioned in the statement. However, the company also added that it is testing new ideas all the time. “Some ideas become products and services that make it to customers. And some we test and learn from.”
It is no surprise that retailers like Walmart are seriously considering the metaverse. Since Facebook (NASDAQ: FB) announced a name change to Meta, many businesses are taking the metaverse seriously and trying to figure out how to fit into that world. Currently, the metaverse is estimated to be worth $800 billion, but that figure would change as adoption increases. Many businesses would want to believe this is a new revenue stream. And that must be Walmart’s motivation. It's fair to say that Walmart wants to be among the first to benefit from the Metaverse.
Let’s take NFTs as an example. By launching an NFT, a business can “tokenize” physical products and services, reducing online transaction costs. For Gucci and Luis Vuitton, who sell luxury brands, NFTs can serve as a kind of authentication for goods that are tangible and more expensive.
Many retailers are reeling from being late to e-commerce. They do not want to make the same mistake with the metaverse. So the metaverse and cryptocurrencies are a win-win for retailers like Walmart. Even if it eventually becomes a fad, there is no reputation damage to a company that just gives some NFTs to its customers in a sweepstake.
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